The objective of the Stand-Up India scheme is to facilitate bank loans between Rs.10 lakh and Rs.1crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.

2.

Eligibility

SC/ST and/or woman entrepreneurs, above 18 years of age

For only green field project

3.

Nature of Loan

Composite loan (inclusive of term loan and working capital) between Rs.10 lakh and upto Rs.100 lakh.

4.

Purpose of Loan

For setting up a new enterprise in manufacturing, trading or services sector by /ST/Women entrepreneur

5.

Interest Rate

Not to exceed (MCLR + 3%+ tenor premium) (As applicable from time to time)

Existing Micro & Small Entrepreneurs dealing with Bank for the past 3 years

Quantum of limits:

Maximum upto Rs 10.00, lac per borrower.

Rate of Interest

MCLR of 1 Year + 1.15% (As applicable from time to time)

Security

Primary Security: Hypothecation of stock in trade, receivables, machinery, office equipment etc. as specified for existing limits.Collateral: The existing securities may be retained while converting the account to LUCC account. However, the recognition of excellent track record of borrowers, banks may be considered in its discretion, to waive collateral security taken for the advance while converting the account under LUCC scheme.

Margin

10% of the credit facility covered under LUCC Scheme.

Validity

LUCC limit sanctioned will be valid for 3 years. However, yearly review may be done by the banks on the basis of the last 12 months turnover in the account and further operations be allowed only if account is operated satisfactorily.

Working Capital & Term loan needs of clients engaged in Retail, Wholesale Trading activities (excepting Exports) and Services Sector who are willing to furnish mortgage of property and or other acceptable security of adequate value.

Activities Covered

Activities covered

Trading Activity other than export, Retail & Wholesale trade and service sector

Primary: Hypothecation of stocks, book debts & Fixed Assets for existing units making profit at least for last two years.

Collateral Equitable Mortgage of Land & Building in his/her own name or in the name of close relatives (subject to terms & conditions) , Assignment of LIC policy, Lien ,Pledge/Assignment of KVP,NSC,Bank's own FDR, Govt /RBI Bonds.

Technically qualified, promising and well trained/experienced person/ persons having entrepreneurial ability including green horn entrepreneurs, running manufacturing and service enterprise under Micro & Small Enterprise as per the definition of MSMED Act 2006.

Quantum of Finance

Rs 1 lacs to Rs 7.50 Crore based on eligibility

Interest

Upto Rs.10.00 Lakh

MCLR of 1 Year + 0.15% (As applicable from time to time)

Rs. 10.00 Lakh -

MCLR of 1 Year + 1.15% (As applicable from time to time)

Above Rs. 1.00 crore

As per internal rating applicable for MSME loan accounts.

For women entrepreneurs, the applicable interest rate will be 0.50% less than effective rate of interest.

Security

Hypo of primary security. No collateral/Third party guarantee upto Rs 10 lacs but CGTMSE Mandatory. Above10 Lakh: Collateral to the extent of 50% of the limit. The collateral security should be in the name of Borrower, Proprietor, Partner, Director and Guarantor.

Any woman individually or any unit set up by a group of women, Partnership Firm in partnership with other women/ men where the major share in the partnership is of women partner(s)/Private Limited Company with major share of Capital being held by Women.

Age Minimum 20 years, Maximum 60 Years.

Experience

The prospective borrowers should preferably have working skill / experience in the intended line of business.

Quantum of Finance

Max: Rs 10.00 Lacs. Out of which WC not to exceed Rs.3.00 lac

Assessment of Loan

Term Loan: Need Based.

Working Capital: 20% of the projected realistic annual turnover.

Margin

Up to Limit Rs 50000: Nil
Limit above Rs 50000 and up to Rs 10.00 lacs: 15%
(If the application is sponsored from any Govt. Agency, Subsidy if available will be treated as Margin)

To provide for adequate and timely investment as well as working capital credit needs of Artisans

Eligibility:

Artisans involved in production/manufacturing process. Preference is being given to Artisans registered with Development Commissioner, Handicrafts/artisans registered with Development Commissioner(Handicraft)

To generate employment opportunities in rural as well as urban areas of
the country for setting up of new self-employment ventures/projects/micro
enterprises

Scope :

The maximum cost of the project admissible under manufacturing sector is Rs.25 lakhs and business/services sector is RS.10 lakhs in Urban and Rural area

Only one person from family is eligible for obtaining financial assistance under the scheme. Assistance for new project only and activity should not be in negative list.

Eligible Entrepreneurs / Borrowers:

Any individual, above 18 years of age, no income ceiling, at least VIII standard pass educational qualification,
iii) For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification.

Selection of beneficiaries:

The beneficiaries will be identified & selected at the district level by a Task Force consisting of representatives from KVIC / State KVIB / State DICs and Banks and headed by the District Magistrate / Deputy Commissioner / Collector concerned.

Total Funded exposure more than Rs 25 lacs =MCLR of 1 Year + 1.15% (As applicable from time to time)Total Funded exposure more than Rs 25 lacs and upto 1 Crore=MCLR of 1 Year + 2.15% (As applicable from time to time)Total Funded exposure more than Rs 1.00 Crore :Based on Internal rating